Clarus Corp. reported third-quarter sales for Black Diamond (BD) that bounced back from the second quarter, but they were still down by 8 percent compared with the third quarter of 2019. Still, the management said it remains upbeat and expects continued recovery into the fourth quarter. Overall, the parent company of BD, Pieps and Sierra Bullets saw revenues increase by 7 percent to $64.5 million, boosted by a 135 percent growth at Sierra, thanks to its recently acquired ammunition business Clarus’ adjusted Ebitda jumped by 34 percent to $9.1 million. Net income of $1.2 million was down from $3.5 million in the year‐ago quarter.
The decrease included $6.6 million in non‐cash charges and $1.4 million in costs related to the acquisition of Barnes Bullets, as compared to $2.5 million of non‐cash charges and minimal transaction costs last year. Clarus purchased Remington’s high-end Barnes brand of hunting ammunition in September for $30.5 million to add it to the Sierra business. More on the quarterly results in The Outdoor Industry Compass.
As of Sept. 30, 2020, cash and cash equivalents stood at $17.0 million and total debt was $41.1 million, with about $40.0 million of remaining accessible on the company’s revolving line of credit. Late last month, Clarus announced a public offering for $85 million worth of convertible senior notes, due in 2026, with an over-allotment option for a further $12.5 million, but a day later, on Oct. 22, it withdrew the proposal, citing “equity capital markets volatility” that would have affected the proposed conditions.
